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MicroStrategy Stock Dips by 8% Following Fresh $209 Million BTC Late Year Buy
In a sudden and unexpected turn of events, the stock of business intelligence firm MicroStrategy has taken an astonishing 8% dip following its recent acquisition of 2,136 Bitcoin (BTC) worth a staggering $209 million.
According to Google Finance, the stock is now trading at $302, marking a significant downturn from previous levels. The drastic drop raises more questions than answers about the implications of the firm’s aggressive Bitcoin buying spree.
As of this writing, MicroStrategy now holds an impressive 446,400 BTC, acquired for a whopping $27.9 billion at $62,428 per bitcoin. It is worth noting that this acquisition was made on December 29th, just one day before the start of the new year.
It appears that the market has reacted negatively to the news, with some analysts speculating that the firm’s Bitcoin obsession may not be as profitable as initially thought. The notion that MicroStrategy’s strategy might ultimately lead to bankruptcy has been floated by at least one prominent figure in the industry. Felix Hartmann, managing partner of Hartmann Capital, took to Twitter to share his thoughts on the matter.
In his tweet, Hartmann ominously warned that MicroStrategy’s aggressive Bitcoin buying will eventually implode and even harm its shareholders. “It will eventually implode, but most shorts will time it wrong and blow up betting against BTC and MSTR,” he wrote.
Other industry experts have also chimed in, suggesting that the firm’s reliance on Bitcoin may not be sustainable in the long run. Unchained head of market research Joe Burnett, for instance, referred to MicroStrategy’s approach as “hyperbitcoinization.”
Despite this pessimistic outlook, it is essential to recognize that MicroStrategy has a significant presence in the cryptocurrency space and now finds itself among the top holders of Bitcoin. The firm first ventured into the crypto sphere back in 2020 during lockdowns.
As we move forward, it will be crucial for investors to monitor the situation closely to determine whether this recent downturn is a temporary blip or an indication of a deeper issue.
Source: www.crypto-news.net
